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It is $12.00 to buy about any brand of laundry soap at the grocery store and nearly $4.00 for enough toilet paper for a week – store brand. I don’t see that as “deflation” which current economic consultants and experts on the news are describing. I see that as opportunistic profiteering and inflation, either by the store, the distributors or the manufacturers.
The price of beef in steaks, roasts and even hamburger is prohibitively high. Most people aren’t or can’t buy it. The demand had to have dropped for beef over the last few years as a result of this ridiculously high price structure. But, the prices stay the same or continue to go higher. It is $4.00 for a package of hotdogs and that is for 12 ounces. Some brands are even higher. It could not possibly cost that much to produce hotdogs and certainly, demand had to have dropped as a result of these prices.
It is there in these groceries, unsold and then which must be dumped – where there continues to be an unnatural inflation – so why are these prices remaining high and increasing as they have? Why would a loaf of any nice premium bread hover around $4.00 a loaf, when very few are buying it at that price? Do sales simply not matter to them? Do they now make money when it is unsold and thrown away?
Out of thousands upon thousands of the products in our stores, the same is true. Prices are being kept higher than the demand naturally would imply. I can only guess that their sales of products are not important to them any longer. The inflation present is not based on costs associated with these products nor on expansive fuel costs nor on the demand in the marketplace. They are laying off workers, so obviously it is not the costs of labor creating the prices, either. These companies are continuing to pay their executives hundreds of thousands a year and many are paying them millions of dollars a year for each and every executive on staff.
In the case of foods, this abundance is hoisted into the garbage over the course of time. It doesn’t make sense. The businesses behind them go out of business rather than changing their prices. Who is making these choices and why would they believe in doing it this way? Do they not care that their businesses don’t flourish and will not offer employment to them once the doors of the business close?
It has seemed odd to me that local business properties have remained empty and keep the same pricing structure for potential leases on their properties as if the area were still premium and well trafficked. A friend suggested that the tax write-offs were based on the price of the space at the going rate unused. It is not a “free market” based economy when the government drives prices to remain arbitrarily high because of an economic advantage derived from loss and a system of taxation that rewards keeping losses rather than reworking them to succeed.
It is just a thought that perhaps the manufacturing and retailing businesses are doing the same thing. By simply keeping prices high and inflating them, sales go down – losses go up and maybe the lower tax bill makes a profit occur than isn’t based on a healthy business model or improving sales. Added to that the recent use of money manipulation and its possible that no one in these industries realizes their profits have tanked and they are no longer financially viable until bankruptcy overtakes them.
Is there anything that can be done to change this before we have no viable businesses left in America?